Canadians want to lock in their mortgages for longer

Canadians want to lock in their mortgages for longer

Canadians want to lock in their mortgages for longer The majority of Canadian homeowners would welcome the opportunity to lock in their mortgages for longer according to a new survey from CIBC. The poll conducted for the mortgage lender by Nielsen found that 47 per cent would opt for a medium-term and 27 per cent would seek a longer-term mortgage if they were to acquire, refinance or renew a mortgage today. Just 19 per cent would look for a shorter term mortgage. "Canadians are recognizing that today's historically low rates won't last forever and some are looking for ways to bring predictability to their finances over the long term," says Barry Gollom, Vice President, Mortgages and Lending at CIBC. "With more than 1 in 4 Canadians now saying they would choose a longer term of 7 or 10 years, we may be seeing the start of a shift to longer terms." The poll also found that 62 per cent of those with a mortgage believe it will be at least ten years before they are mortgage-free. 
 
22 Comments
  • Omer Quenneville 2015-05-14 8:10:12 AM
    The may feel this way without proper information being fed to them from the bank. It is a fact that they will want to or need to refinance much sooner for what ever reason and the bank will walk away with a nice big fat discharge penalty cheque. Variable is still the way to go.
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  • Randy 2015-05-14 9:03:44 AM
    I agree. The lenders will gain more for longer term mortgage as the borrower will have to pay a hefty penalty if they want to refinance before the term is over. Most of the times people refinance within the first term. Variable rate is the way to go.
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  • Randy 2015-05-14 9:03:46 AM
    I agree. The lenders will gain more for longer term mortgage as the borrower will have to pay a hefty penalty if they want to refinance before the term is over. Most of the times people refinance within the first term. Variable rate is the way to go.
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